Start your year with these entrepreneurial health checks


Opinions expressed by Entrepreneur contributors are their own.

With the turn of the calendar comes important personal health checks — the kinds of things you do each year to make sure you're staying on top of your wellness. It can be tempting to avoid these checks. I mean, “If it ain't broke, don't fix it,” right? However, we don't always know we're “broken” until we take a closer look. And we can't get healthier if we don't check in, set goals, and work toward them.

Your entrepreneurial health also matters. And while the hustle and bustle of running a business can cause you to overlook your entrepreneurial health, it's critical. If you want to be successful and build a company that outlasts your leadership, you need annual checkups.

The goal is that build value within your company that prepares you for the future. This begins with annual internal culture, personal and values ​​reviews, which result in a process for short and long term planning that will set you up for personal, financial and business success. That's why, every calendar year, I set in motion three checks to ensure good entrepreneurial health.

Related: 10 New Year's Resolutions Entrepreneurs Should Make Every Year

Check #1: People and Culture

Every year, I send out an internal survey to check the health of the people of my company. They are incredibly important to the value of the company. The survey takes about 20 minutes and I use it to produce a barometer of employee satisfaction so that I have a true measure of the atmospheric pressure within the business.

A key point of this survey is that I ask them to rank 20 or more benefits according to what they would like to include in their compensation package. Then, in the following year, we offer all of the top five benefits and most of the next five benefits. Benefits ranked #11 and #12 can be provided if certain key performance indicators are met in the coming year, and each employee can choose the two benefits most important to them. It's a way to understand what's important to employees in general, while recognizing that not every employee needs the same things from a benefits package.

Related: How to master your strategic planning as you prepare your business for 2025

Check #2: Value

I also complete an enterprise value assessment every year, which helps me understand the value of my company if I were to sell it at that point. Valuation helps me identify areas where the company has grown in value and where our growth opportunities lie in the coming year. It also helps me think about whether this year is the right time to sell the business.

For example, if my business is worth $50 million and my wealth gap—the amount of money I need to raise to meet my lifetime personal wealth needs—is $25 million, it may make financial sense to sell , even if this will not be my last business. For the clearest picture, I always recommend engaging a value advisor—one who is a Certified Exit Planning Advisor (CEPA).

Control #3: Personal

Of all the checks, this is the most frequently overlooked, which is strange since the new year often brings a time of personal introspection. Let's say yours assessment of value says your company should enter a period of growth and your advisory team is telling you that your market conditions are ripe for growth. This means that your business will need an injection of money and time. Is the time right for your personal goals – as a parent, as a spouse – for you to further invest in your company? Both in time and money? If your personal goals don't align with where your business is going, you'll need to resolve those issues before entering into any annual planning process.

Related: Successful entrepreneurs use vacations to reset – will you be one of them?

Processing your check, planning with a process

Once I've completed these three checks, I'm equipped with the right information to start planning for the new year, as well as any long term strategy. The value and personal checks help me understand whether or not my business is entering a period of growth (or what I need to do to achieve it) and whether I am preparing to leave my company. With this understanding, I can visualize my short-term and long-term goals. Here are some things to keep in mind:

  • Start with long-term thinking—three to five years. Arrange a meeting to discuss the vision and way forward with your company's leadership, using the direction you have from your three-year reviews.
  • Then, take a step back. Together, develop a written plan for the next two years, including strategy and financial goals. Don't just include numbers – explain how you will meet those numbers. Give each department head time at the retreat to explain to the other heads how they will accomplish those goals.
  • Then, focus on next year. Identify short-term goals, opportunities, threats, strategies to generate revenue and generate value. Identify topics within the plan. Need more tech? More strategic partners? Operational changes? If you are planning an exit, how can you preserve or accelerate value quickly? This should be your most detailed plan—it's the one you'll start working on when the calendar turns to a new year.

This time of year is always invigorating for me. Each new year brings unlimited opportunities that truly excite my entrepreneurial spirit. Making sure I build a plan that stays true to what I've discovered during my annual checkups gives me the best chance of getting closer to my personal and business goals.



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